News Headlines Article

Blue Shield of California loses tax-exempt status
San Francisco Chronicle

The state Franchise Tax Board has stripped Blue Shield of California of its tax-exempt status, a move that could make the 76-year-old San Francisco health insurer responsible for paying millions in state income taxes.

Officials from the tax board would not explain why they took the action in August, but critics have long accused the insurer, until now classified as a nonprofit, of acting like a for-profit while amassing billions of dollars in reserves, paying high executive salaries and hitting consumers with rate hikes.